Auto Retail Sales Jump 9 Per Cent In 2024, Two-Wheelers And PVs Remain In Demand

The FADA on Tuesday said that the industry saw a 9 per cent jump in overall vehicle registrations in 2024 to 2,61,07,679 units, against 2,39,28,293 units registered in 2023 calendar year.

In 2024, passenger vehicle sales touched 40,73,843 units, climbing 5 per cent from 38,73,381 units sold in 2023.

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Automobile retail sales climbed 9 per cent in 2024 in comparison to the previous year as demand for two-wheelers and passenger vehicles remained strong in the industry. 

The Federation of Automobile Dealers Association (FADA) on Tuesday said that the industry saw a 9 per cent jump in overall vehicle registrations in 2024 to 2,61,07,679 units, against 2,39,28,293 units registered in 2023 calendar year.

C S Vigneshwar, President, FADA, said, “Despite multiple headwinds in CY24, including heatwaves, elections at both central and state levels, and uneven monsoon, the auto retail industry remained resilient," reported PTI.

The executive said that better supply, fresh models, and robust demand at the rural level pushed growth in the two-wheeler segment. However, he added, financial constraints and increasing competition from EVs continued to be the major challenges for the sector.

“The passenger vehicle (PV) segment benefited from robust network expansion and product launches, albeit with margin pressures due to higher inventory, thus leading to a discount war towards the second half,” the president said.

In 2024, passenger vehicle sales touched 40,73,843 units, climbing 5 per cent from 38,73,381 units sold in 2023. The two wheeler sales jumped 11 per cent in 2024 to 1,89,12,959 units, against 1,70,72,932 units sold in the corresponding year-ago period. Meanwhile, commercial vehicle sales stood flat at 10,04,856 units in 2024.

Road Ahead For Auto Industry

Regarding the business outlook of the sector, the federation noted, “In the two-wheeler segment, rising rural incomes, fresh model introductions, and an eventual plateau in EV disruption could revitalise growth after years of sluggish demand. The CV sector is looking for the momentum from infrastructure investments, stable credit availability, and government incentives - factors that could spark a healthy uptick in fleet renewals and expansions.”

At the same time, passenger vehicle dealers expect new SUV launches to bring in more consumers, along with feature-rich EVs luring in buyers. However, the body noted that price-sensitive buyers and fluctuations in the interest rate are key factors to look out for.